On January 1, 2022 a company issues 3-year bonds with a face value of $2,000,000. The bonds have a stated (i.e., coupon) interest rate of 5% and pay coupons annually, in cash, on December 31 of each year. At the time of the bond issuance, the market interest rate is 7%. What is the present value of these bonds at the date of issuance? Please provide a dollar amount. (4 points)

Hints and Suggestions Q4: There are two interest rates in this question. The stated (i.e., coupon) rate is used to calculate the annual coupon payment made to bondholders on December 31 of each year. The market rate is used to discount the future cash flows associated with these bonds.